Opportunity for VAT Deduction in Representation and Customer Expenses

• The Supreme Court presented a preliminary question to the Court of Justice of the European Union on July 22, 2024 regarding the deduction of VAT in representation expenses and customer care.
• If the CJEU determines that Spain has misused the “Standstill” clause, companies may be able to deduct VAT on these expenses in the future and recover VAT not deducted in the last four years.
• It is recommended to review these expenses and keep all supporting documentation to demonstrate their business nature.
• The VAT department, led by Fernando Matesanz and Ana González, is assisting clients in verifying if they have sufficient evidence to exercise the right to deduction and helping them in the declaration and verification process that the AEAT will likely carry out.
• The department is available to review VAT from previous years and provide support in this process.

Source: audiconsultores-etlglobal.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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